The U.S. Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) have withdrawn a 2023 joint statement that had cautioned lenders against considering an applicant’s immigration status in credit decisions.
The withdrawal, announced on the DOJ website on January 12, 2026, clarifies that lenders may consider a non-citizen’s immigration or lawful residence status when assessing loans.
The agencies said the earlier guidance caused confusion and that the clarification aligns credit practices with long-standing federal civil rights and fair-lending laws.
What the U.S. government is saying
The original joint statement, published on October 12, 2023, warned lenders that considering an applicant’s immigration status could, in some cases, violate the Equal Credit Opportunity Act (ECOA) and its Regulation B rules. These rules prohibit discrimination based on race, national origin, and other protected classes.
The DOJ and CFPB now say this guidance may have caused unnecessary confusion. It implied that lenders could not consider immigration status at all.
In reality, ECOA and Regulation B have long allowed lenders to consider immigration or citizenship status when assessing creditworthiness. Lenders must still comply with other federal requirements, such as anti-money laundering and “Know Your Customer” regulations.
Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division emphasized: “The federal government is committed to avoiding statements that could confuse the law or imply compliance standards for civil rights laws that lack any statutory or regulatory basis.”
Acting CFPB Director Russell Vought added, “For decades, ECOA regulations have permitted lenders to consider a borrower’s lawful residence status and other information necessary to protect their rights and remedies with respect to repayment. We are correcting the last administration’s attempt to ignore these well-accepted and common-sense principles of our nation’s fair lending laws.”
The agencies stressed that existing protections against discrimination based on race or national origin remain unchanged. The withdrawal primarily removes unnecessary compliance burdens and clarifies that immigration status can be factored into credit decisions without violating federal law.
What this means
For non-U.S. citizens in the United States, this clarification has direct implications for access to credit. Lenders can legally consider immigration status when evaluating applications for mortgages, personal loans, or business financing, reducing uncertainty for both borrowers and financial institutions.
- Nigerians and other immigrant communities living in the U.S. now have clearer guidance on what factors may influence their credit eligibility.
- While borrowers remain protected against discrimination on grounds such as race or national origin, their lawful immigration or residence status can legitimately inform lenders’ risk assessments.
The withdrawal also reduces regulatory confusion, ensuring that lenders do not misinterpret prior guidance or unnecessarily limit standard credit practices.
What you should know
As debates over immigrant welfare and economic contribution continue in the U.S., President Donald Trump and many Republicans have focused on data showing reliance on public assistance, while Democrats emphasize broader social support and integration policies.
According to a chart Trump shared on January 4, 2026, about 33.3% of Nigerian immigrant households in the U.S. receive some form of public assistance, including food and healthcare benefits.
Other countries with high immigrant welfare rates include Bhutan, Yemen, Somalia, the Marshall Islands, Dominican Republic, Afghanistan, Congo, Guinea, Samoa, and Cape Verde.
The figures add to ongoing discussions on how immigration intersects with U.S. social policies and economic debates.
